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Appropriation of Profits

Shares of fac...

Question

Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is equal to ___________.

A

5

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B

4

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C

80

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D

50

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Solution

The correct option is B 4
Dividend is calculated on paid up capital. In the given case, paid up capital is Rs.8, dividend 50% of paid up capital will be Rs.4.

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